PokéBase - Pokémon Q&A
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I’ve had a shiny diancie since sun and moon and idk if I wanna use it online for battle because I’m worried that it’s still shiny locked and they will take my diancie

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Diancie was never really shiny locked in the first place. Because you can only get it through events, there wasn't any legal way to get a shiny one, as trying to soft reset for one wouldn't do anything.
That being said, there has only been one event distribution of shiny Diancie.

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Also, as far as I know, your Pokemon can't be taken if they're illegal.

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